In the discussion of commercial real estate in the Boston area, the question of business failure sometimes comes up. While it’s true that some vacancies occur due to business failure, others happen for benign reasons.
Occasionally a tenant will seek a new location because they’ve outgrown their current office space. In other cases tenants move because they want to reduce their leasing expense. I help people in these situations quite often.
Yet it must be acknowledged that business failure happens in Boston, as it does around the country. A study published by the New York Times indicated that nearly half of new businesses fail within the first 5 years – and that this failure rate has not materially changed in the past 30 years. Nor does it seem to matter if a new business was started during an economic upswing or downturn. Business studies investigating causes of failure have identified these common issues:
- Insufficient operating capital
- Inadequate planning
- Inability to react to change
- Insufficient resources
We should also keep in mind that it’s very easy to start a business in America, and therefore many people begin an endeavor without being as prepared as they should. It’s also relatively easy to terminate a business. In some cases it’s simply more work than people expected it to be!
Obviously, being prepared makes a difference! And because small businesses are so essential to our economy, there are a host of resources in Boston to serve both the new and the seasoned entrepreneur. In my prior blog post I discussed SBA programs. This week I have City and State resources to share! Make note of these links:
City of Boston Business Start-Up and Resources is a guide for all things business in Boston. Info on city permits, licensing, financing, initiatives, a guide for non-profits, and more.
The State of Massachusetts Department of Housing and Economic Development has information on taxes, incentives, licensing, funding, and general guidelines for operating a business.
The Massachusetts Small Business Development Center/Boston Regional Office & Minority Business Center. A long name that represents combined offices, but don’t let that discourage you! There are a ton of incredible resources here for both start-ups and established businesses. All resources are open to the public; you do not have to be a member of a minority group, though there are tailored resources available for women and minorities. Even if you’ve been in business for awhile, there is probably information here you didn’t know about!
It’s easy to understand the popularity of Boston Metro commercial real estate! We have an excellent business climate, and vast resources available for businesses of all sizes and types.
If you are making plans to relocate, begin, or expand your business, I will be happy to help you! With just a few details from you, I can prepare a cost analysis for the square footage, location and building type you are looking for. As your experienced commercial real estate agent in Boston’s Metro area, I will provide you with excellent options for property leases and purchases!
Contact me today and I will find the ideal location for your business!